Poultry farming is the most intensive animal husbandry branch that is able to develop on an almost self-financing basis – ProAgro Company research

16:32 | ProAgro

At present, the market of poultry products is one of the most promising and highly productive areas in the animal husbandry industry. The market growth takes place due to the consumers’ replacing beef and pork with poultry meat.

Besides, high prices for pork and beef as well as their constant growth compared to poultry meat prices is the decisive factor for a consumer during the selection process. In view of the unsatisfactory material situation of the majority of population, the transfer to cheaper products is obvious. Moreover, in the conditions of the financial crisis, the material situation of the Ukrainian citizens deteriorated that prompts them to choose poultry meat.

Talking about the figures one can say that in terms of production of broiler meat in 2008 Ukraine took the 15th place in the world, and its share in total production was 0.86%; however, in Europe Ukraine’s production volumes are among the highest. The year of 2008 was unprecedented in terms of production of boiler meat because it exceeded the 1990 indicators, whereas the volumes of eggs production still did not achieve the level of 1990. Although at the level of the world’s market, the positions of the eggs branch are better compared to the meat branch. In 2008, Ukraine took the 11th place in the world market of eggs production (1.16%), and in the European market, Ukraine’s share was 7.6%.

Poultry farming organized on an industrial basis is the most intensive animal husbandry branch that is able to develop on an almost self-financing basis without external financing. The branch is characterized by low energy consumption and high output of capital investments.

A short pay-off period can be explained by the fact that poultry is characterized by high productivity and early maturation. For instance, an average cycle of chick’s growing is 40 day whereas the duration of this cycle for a pig is 180 days, and for a calf - 450 days. One hen of meat breed with the all-year-round stock furnishing can give 140-160 kg meat. The biological characteristics of poultry make it possible to use intensive methods of growing and housing in order to organize even production at large enterprises throughout the whole year. That is why when a poultry farm needs on average eighteen months for the investments to pay back, a swine breeding farm needs about five years.

A special feature of the poultry farming industry is that fact that in the structure of production costs of this branch feed requires the highest expenses. During the production of poultry meat, the share of the feed costs in direct material inputs is 72%, and during production of eggs the share of feed costs today achieves 85%. Due to this, the branch depends very much on the level of prices for the components of compound feeds. The trends characterizing the grain market are the decisive factor determining the size of the expenses of production and, consequently, its profitability. Ii its turn, it determines the price trends in the sales of chicken meat and semi-processed products made using chicken meat. At present, in order to decrease the expenses and depending on the suppliers, the majority of large producers have their own facilities for production of compound feeds for in-house consumption.

New thorough research by ProAgro Company "Ukrainian Poultry Farming" covers dynamics and key trends of poultry farming development in Ukraine. In the research market analysis is presented in all its aspects - from poultry breeding, young birds supply to poultry plants, material and technical basis to production of poultry meat and chicken eggs and trade with them and their processing by-products.

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